Cash on Cash Return Calculator

Cash on cash return calculator let’s you calculate Return on Investment (ROI), specifically on the cash you invest in a rental property. In addition, you can also calculate capitalization rate as well as property purchase price you would want to pay to achieve your desired capitalization rate.

 

How to use this calculator?

Follow the 4 steps below and enter your information carefully.  Calculations will automatically recalculate when numbers are changed. Results appear at the very end. Some fields require market specific information, we encourage you do further research or use rough estimates.  As usual, calculations are for educational purposes only, please consult a professional before making any investment decisions.
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1. What is the rent you expect to earn on the unit?

Monthly Rent

Vacancy %

Total Vacancy Loss

Gross Operating Income (Monthly)

2. What are your monthly expenses to run the property, excluding finance costs?

Maintenance Reserve (per month)

You need to set aside some money every month for unit maintenance.

Property Taxes (per month)

Property taxes will be different from city to city. Lookup property taxes in your area. In this calculation we estimate 1% of Total Property value.

Insurance

Insurance for property that is rented out is typically a little more expensive than if you were to occupy the unit. Lookup insurance costs for rental properties in your area.

Replacement Reserve (per month)

Eventually things will need to be replaced. You can set aside a budget today so these expenses don't hit you financially when they occur.

Utilities

In case tenants don't cover 100% of the utilities.

Marketing

Cost of running ads.

Other expenses

Catch-all field for all other expenses.

Total Monthly Expense

Operating Income (Annual)

Operating Expense (Annual)

Net Operating Income (Annual)

3. What is your desired capitalization rate and actual property purchase price?

Capitalization Rate

Property Price Based on Cap Rate

This is what property price needs to be to achieve your desired Capitalization Rate. If the actual price is lower, actual capitalization rate will be higher.

4. Mortgage Information

Actual Purchase Price

Price you actually have to pay for the property.

Down Payment (%)

Down Payment ($)

Mortgage Amount

Real Estate Transfer Taxes

Lawyer and Other Fees

Mortgage Length (Years)

Interest Rate (Annual)

Cash Needed Upfront

Mortgage Payment

Includes Principal & Interest.

Total Cost of Debt (Annual)

This is your total cost of financing the property per year.

Actual Capitalization Rate & Return on Investment (ROI)

Calculated Actual Capitalization Rate

Actual Capitalization Rate given the actual price of your property.

Total Cash Flow (Annual)

If the number is negative that means you will have to pay out of pocket on top of rental income to services this property.

Cash on Cash Return (ROI)

Return on Cash you actual invested.